By Lucas Downey Updated May 29, Traders often jump into trading options with little understanding of the options strategies that are available to them. There are many options strategies that both limit risk and maximize return.
Build and save strategies such as two-legged spreads or spreads utilizing options plus an underlying contract such as a Covered Call, Protective Put, or Collar.
Modifying Strategy Legs All strategy legs are displayed in the center of the screen. You can add legs, change the instrument, and make changes to variables for each leg.
Simply click on the leg to expose the variables that you can change. In the example below, the Futures symbol ESZ is selected. Right-click on the Symbol.
How to build a strategy: Go to the "Select Strategy" drop-down menu and choose one of the strategies that's listed. In the "Type to search" box, enter the symbol or name of a stock or ETF. Set the expiration date you want by sliding or clicking on the bar in the Strategy duration section. Click the "Build … Strategy" button to display your potential results.
You can either change the instrument, add a dependent option leg, or delete the leg. When selecting a Futures Instrument, the variables that you can adjust are shown on the right side of the screen.
You may change the underlying price or click the MKT button to insert the current market price. You may also change the position and quantity, if desired.
Build an options strategy selecting an Options instrument, two sets of variables are displayed on the right side of the screen in tabs labeled "Basic" and "Advanced".
In the "Basic" tab, you can change the leg type, underlying price click the MKT button to insert the current market price.
You can also change the quantity, exercise price and days to expiration, if desired.
In addition, you can configure a Block trade directly from Strategy Creation. Using a stand-alone Strategy Creation widget To create a strategy using a stand-alone Strategy Creation widget: In an opened Strategy Creation widget, select an exchange and account using the exchange and account selectors at the top left corner of the widget. For the first leg, click Select and choose a product type e. Use either the Explorer or the Instrument Picker to identify the contract.
As you change the variables, the Payoff Analysis chart and table also adjust.